Post by : Badri Ariffin

In a decisive move, Adani Group has won the backing of majority lenders to acquire Jaiprakash Associates Ltd (JAL), offering the highest upfront payment among competing bidders. The Rs 14,535-crore deal positions the conglomerate to take over the struggling infrastructure and cement company, whose financial troubles have lingered since defaulting on loans exceeding Rs 57,000 crore.

The Committee of Creditors (CoC) evaluated proposals from Adani Enterprises, Vedanta Ltd, and Dalmia Cement (Bharat), with Adani securing an overwhelming 89% of the votes. Dalmia and Vedanta followed at a distant margin, while a few lenders, including SBI and ICICI Bank, representing under 3% of the voting share, abstained. National Asset Reconstruction Company Ltd (NARCL), holding 86% of CoC voting rights, played a decisive role in the process.

Adani’s offer includes Rs 6,005 crore as upfront payment and another Rs 6,726 crore to be paid over two years, translating to a net present value of about Rs 12,000 crore. In comparison, Vedanta’s plan offers Rs 3,800 crore upfront with deferred payments totaling Rs 12,400 crore over five years, and Dalmia’s offer was partially contingent on a pending Supreme Court matter with YEIDA.

Jaiprakash Associates, admitted to the Corporate Insolvency Resolution Process (CIRP) in June last year, holds a diversified portfolio spanning real estate, cement, power, hospitality, and engineering & construction. Its high-value assets include Jaypee Greens projects in Greater Noida and Noida, the Jaypee International Sports City near Jewar International Airport, four cement plants in Madhya Pradesh and Uttar Pradesh, and multiple leased limestone mines. The company also controls key subsidiaries like Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.

The CoC relied on a structured evaluation matrix to determine the most viable resolution plan. Adani’s proposal stood out for its higher upfront payment and faster disbursement timeline, making it more attractive to lenders seeking quicker recovery. The acquisition will potentially stabilize JAL’s cement operations, ongoing EPC projects like the Pakal Dul Dam in Jammu & Kashmir, and the Srisailam Canal project in Andhra Pradesh.

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